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The Chilean peso joins the emerging currencies that are coupled with the good mood shown by the markets after the US elections.
For the moment, the Chilean peso is emerging victorious in the presidential elections of the United States to the extent thatThe markets look at the glass half full of this narrow Biden lead and they anticipate that corporate taxes will not increase with a divided Congress.
With the bulk of emerging currencies taking flight against the dollar, the exchange rate began the day at $ 750.67, falling $ 7.1 from yesterday’s close. This is the lowest value for the exchange rate since December 27 of last year.
Capitaria’s Head of Trading Studies, Ricardo Bustamante, further explains that “the possible victory of Joe Biden, a Democratic candidate who is on his way to being the new president of the world’s main economy, has generated a significant weakening of the world’s greenback Considering that, precisely, the Democrats have been seeking a greater fiscal stimulus than the Republicans in the last negotiations. “
In this way, Bustamante adds that “the greater the stimulus, the more dollars there will be in circulation, generating an excess supply of the greenback, which causes its weakening.”
According to Reuters data, The dollar index, which compares the greenback to a basket of six prominent currencies, was trading near a one-week low.
There are also local factors that are driving the Chilean peso. From Capitaria they mention that “the approval of the Chamber of Deputies of a second withdrawal of 10% of AFP funds, has supported an additional local weakening of the greenback, although it does not have a path as clear as the previous withdrawal so that become law. “
Of course, on the day the local currency is pressured by the copper. Three-month contracts of the red metal fell 1.7%, reaching US $ 3.09 a pound. Admiral Market analyst Benjamín Saavedra highlights an appreciation in Latin American emerging currencies.
Despite these data, the XTB Latam Market analyst, Francisco Román, indicates that “although we see a decrease in the price of the red metal, its value is maintained thanks to the fact that the Candelaria mining company continues on strike, which has been going on for 29 days. where four proposals have been rejected and activities will continue to be halted. “
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